The non-payment of a first premium will prevent a contract from going into effect unless such prepayment is waived, as shown in the last section. The nonpayment of a subsequent premium will not affect the validity of the contract, unless the policy expressly provides that the policy shall lapse in such cases. In the absence of such a provision, the unpaid premium becomes a debt due from the insured to the insurer, and the latter still remains liable under the policy.6

When a policy provides for a lapse in the case of non-payment of a premium, the rights of the insured are determined by the terms of the policy. The usual results of such non-payment are, (a) forfeiture of all rights, or (b) by extension of insurance for a certain period, or (c) granting paid-up insurance for a certain period.7 The non-payment of a note given for a premium does not affect the rights of the parties,8 unless it is expressly provided that the policy shall be forfeited by such non-payment of the note.9